Paying off trade-ins when nothing is owed
I recently bought a used car and traded my old one. The bad thing is that the dealer added an extra $2,300 to the contract to cover paying off the balance on my old car. I saw this and told them that I already had paid off the old car. The dealer said to come back the next day with proof of the payoff, and I did. They told me that they will call me back to sign a new contract. It's almost been a week now and they left me a message saying that they are still working on the deal. Do I have any recourse on this?
If the contract calls for a balance to be paid on the trade-in and the trade-in is paid for, the contract should be voided.
While you should never have signed a contract you knew to be wrong, the dealer can't represent that it's using $2,300 from the loan proceeds to pay off a nonexistent lien. You don't mention whether you're driving the new used car, but if you are you'd better return it to them quickly and get this matter straightened out.
Here are this week's reader questions
- What you see is not always what you get
- How can I void an exaggerated service contract?
- Why would a dealer charge a payoff price on a car I've paid off?
- Is there any way to get out of a car lease that's killing me?